Senate Vote Blocked on Interest Rate Measure

Submitted by Libby A. Nelson on May 9, 2012 - 3:00am

A bill to keep the interest rate on subsidized student loans at 3.4 percent for another year failed to pass a key procedural hurdle in the Senate on Tuesday, setting up more conflict over how to stop the interest rate from doubling July 1. Democrats and Republicans have agreed on the need to keep the interest rate at its current, historic low for at least another year, but can't find common ground on how to pay for the extension. House Republicans passed a bill last week to take the needed $6 billion from a preventive care fund in the health care reform law, while Senate Democrats support changing tax laws to require high-earning stockholders in certain types of corporations to contribute to payroll taxes.

The Senate voted 52-45 in favor of allowing debate on the bill, but failed to reach the 60 votes needed to defeat a filibuster.